Ross Greenwood: Good morning to you Karl.
Good Morning everyone.
The media industry, hopeful that there’s a promise of a political change will allow mergers, maybe a pushback against the rising influence of Facebook and Google – well, it’s got a few hurdles in front of it, it seems.
First the Ten Network… it’s broke.
Over the weekend, the Commonwealth Bank appointed a receiver to that business to try and protect its $200 million loan.
It virtually assured that the 17,000 individual shelters in the network will get absolutely nothing.
But Tens financial state is also important to cricket, which has its own battles as you know.
While Nine holds our rights to test in One Day Cricket in Australia, Ten holds the Big Bash rights.
Foxtel holds the rights to matches played overseas.
The parties, included to believe 9, want One day Tests and Big Bash TV combined.
So in other words, all on the one network.
Currently Cricket Australia receives about a $100 million a year in television rights from Test and One Day matches, which is now considered expensive.
But another $20 million or so for Big Bash, and that is considered to be cheap.
The preferred position was to renegotiate the rights between now and the end of the year – but it’s been delayed by the players pay dispute where this year’s series are in doubt, because they are technically no players.
But the other thing is the state of the collapse Ten Network which is right now in no position to bid for anything.
So that’s cricket and Ten…
The other media story – Fairfax Media which over the weekend has sent its main suitor for a $2 billion dollar takeover, private equity group TPG, just walk away.
It means Fairfax now goes back to the drawing board to consider floating off its Domain real estate website and working out what to do with its other assets, the Sydney Morning Herald, the Melbourne age and the Financial Review.
And out of all of this, it’s stuck in the middle, is the media change the Senate and specifically pull in Hansen waiting to decide to see what to do.
Over the weekend, the Dow Jones index up by 62…The Dollar 76.8 US cents.